- If you've made a mistake on your tax return, you may need to file an amended return using Form 1040-X.
- Amending your return can update your income, change your filing status, and help you claim credits.
- Not every mistake requires filing an amended return.
If you experience that "oh no" moment when you realize you forgot to report some income or overlooked credits when filing taxes, don't panic. You can always file an amended return.
Crystal Stranger, an enrolled agent and the CEO of Optic Tax, says having to file an amended tax return isn't a big deal.
"Filing amended returns is quite common and done for many legitimate reasons," she says.
Here's what you need to know before you amend your tax return.
Understanding amended tax returns
If you make a mistake when filing your annual tax return, you can correct it by filing an amended tax return. The form you must file to amend your return is 1040-X, the Amended U.S. Individual Income Tax Return.
Up until August 2020, you had to print a hard copy of Form 1040-X and mail it to the IRS, regardless of whether you filed your original return by mail or online. But technology eventually prevailed, and now you can file amended returns with online tax software, as long as you also filed your original tax return online.
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When to file an amended tax return
Stranger says that common reasons for needing to amend your tax return include:
- Changing the amount of income or expenses after you discover you miscalculated when filing the next year's return
- Adding tax credits that were previously overlooked
- Carrying losses back to previous years to offset your income and get a refund
- Reporting 1099 income that you didn't report previously (the IRS will often send you a letter in this situation)
"Amended returns are great for claiming a missed deduction or correcting an error discovered later," Stranger says. "But they should be used carefully, as amending a return increases the statute of limitations for the IRS to audit that year of a tax return."
Common reasons that people need to file amended tax returns include claiming tax credit or deduction that wasn't included on the original return, updating income, and needing to make changes to tax liability. The IRS's Interactive Tax Assistant has a quiz that will help you determine whether you should file an amended return.
But it's important to note that not every tax mistake necessarily requires an amended return.
The IRS classifies some mistakes as "mathematical or clerical errors," and it reserves the right to rectify those mistakes without any action from you. This right is known as the IRS math error authority, according to the IRS's National Taxpayer Advocate. If you've fumbled some addition or subtraction or forgotten to include information that you need to prove you qualify for certain tax credits, you don't need to file an amended return.
Additionally, Stranger says that some mistakes, like changing your filing status from married filing jointly to married filing separately or changing your accounting method (in some circumstances) can't be rectified through filing an amended return.
"A little-known rule allows for a 'superseding return' that can be filed up to the due date of the tax return, including extensions, and replaces the tax return without any of these restrictions," Stranger says. For that reason, she says that it's always a good idea to file an extension when you do your taxes, even if you file before the deadline in April — it gives you more time to make changes by filing a new, superseding return if you make a mistake.
If you do have to file an amended return, keep in mind that the changes might also affect your state tax return. Contact the tax authority in your state to figure out what steps you need to take to amend your state tax return.
Quick tip: You can change your filing status from married filing separately to married filing jointly through an amended tax return, just not the other way around. Other filing status changes are also allowed.
Filing deadlines
If you do need to file an amended return, the IRS says you have either three years after the date you filed your original tax return (the one with the mistake you're now trying to fix) or two years after the date you paid your tax (if you owed) to file your amended return, whichever is longer.
Note that if you filed your original return prior to the filing deadline — typically April 15, or October 15 if you filed an extension — it is considered filed on the deadline, so you have until that date three years later to amend.
Quick tip: The IRS typically has three years to initiate an audit (or six if the error is significant).
Steps to filing an amended return
Filing an amended tax return is simpler than you might think. Here's what you'll need:
- A completed Form 1040-X for each year that you're amending your return
- A copy of the original return you need to fix or update
- Any notices the IRS sent you about issues with your return
- Any supporting documentation you need that has to do with the changes you're making (e.g., additional 1099s or W-2s if you're changing your income)
Here's how the process works:
- Complete Form 1040-X. If you're amending tax returns for more than one year, you must fill out one form for each year. You can complete the form online if you amended your tax return from 2019 or later and you originally filed your taxes online. Otherwise, you'll need to fill out a paper copy and mail it to the IRS.
- Follow the instructions on the IRS website. The form has three columns: In Column A, you'll add the numbers from your original tax return. In Column C, you'll add the new, accurate numbers. Column B is the difference between the numbers in the two other columns. On the back of the form, you'll describe why you're making each of the individual changes.
- Mail your paper amended return or file it online with your tax prep software.
Quick tip: If you're mailing in your return, the address you send it to will depend on the state where you live. Check out the IRS site to find the right address for you.
What to expect after filing an amended return
How to track your amended return
Once you've filed an amended return and the IRS receives it, it will typically take eight to 12 weeks to process it and issue a refund if you're due one. In some cases it could take up to 16 weeks.
You can check on the status using an IRS online tool: Where's My Amended Return? Your return will not show up in the tool until three weeks after the date it's postmarked. You'll need to have your Social Security number, birthday, and ZIP code handy.
If the status shows as "received," the IRS has your amended return and is working on it. "Adjusted" means that they've made a change of some kind to your account — you may now owe tax or have a refund. If the status is "completed," it means processing is over, and you should expect a letter with the details soon.
Consequences of not filing an amended return
There is no penalty for simply filing an amended return. But if your mistake caused you to underpay tax, you will owe that additional tax.
If you amend your tax return before the April deadline and pay the remaining tax you owe, you won't have to pay a penalty. If you don't file until after the deadline, the IRS may assess penalties and interest for the additional tax.
You may also be wondering whether filing amended tax returns increases your chances of an IRS audit.
"Requesting a high refund on an amended return does carry a high risk of being audited," Stranger says, "But otherwise, I haven't seen it overall increase risk more than any other return filing."
Filing an amended return may be a bit of a hassle, but it will set the record straight with the IRS and ensure you're paying only your fair share of tax. The steps above and the linked resources from the IRS will make filing an amended return relatively painless. Stranger recommends filing your amended return sooner rather than later once you've realized there's an issue.
"It is always better to file an amended return voluntarily rather than to wait for the IRS to find an error," she says. "You are much more likely to get penalties waived from voluntary compliance than if you are under IRS examination."
FAQs on how to amend your tax return
An amended tax return is a form you file with the IRS and your state government to correct a mistake on a previously filed tax return.
You may need to file an amended return if you miscalculated your income, expenses, or tax. You may also want to file an amended return if you forgot to claim tax credits or deductions that you're eligible for.
It typically takes eight to 12 weeks for the IRS to process an amended tax return, but it could take as long as 16 weeks. Your state government may work more quickly.
Yes, you can file an amended return online. Complete Form 1040-X and file it using tax software.
